High St exodus as we kick shopping habit

For many, the shopping mall offers an escape from the grimmer realities of life. But as those realities grow even grimmer, retail therapy is a luxury becoming increasingly beyond our reach.

Lure: Stores are having to slash prices to tempt shoppers

With the economic crisis deepening, fewer people are treating shopping as a leisure activity, the Bank of England said yesterday.

And those who just can't keep away are sticking to discount stores and factory outlets.

Retailers told the Bank that they have seen evidence of less 'impulse spending' and dwindling numbers at shopping centres.

There has also been a surge in eating and drinking at home, rather than forking out for a trip to a pub or a restaurant. At super-markets, more are buying 'unbranded, or 'value' products.

Large household purchases, such as a bed, carpet or kitchen table, are simply being put off till financial prospects improve.

The Bank's bleak assessment of the crumbling economy highlights how people are struggling to survive the downturn. It says that fear of losing their jobs is driving many to rein in their spending as more firms plan to make redundancies.

Expecting the quietest festive season for decades, shops are cutting back on plans to hire extra staff to cope with the Christmas rush.

In the services sector, companies' intentions to hire more workers have plunged 'particularly sharply' to their lowest level since records began in 1997.

Some bosses told the Bank that they are planning to freeze wages or postpone any planned pay rises to save money.

Others say they were intending to give pay rises, but know that they do not need to be generous.

The widespread fear for the future is prompting people to try to save. A report from the Yorkshire Building Society says around 40% of people could survive for just 11 days if they lost their job.

Job cut anouncements have come thick and fast over the last ten days.

A long list of corporate giants including BT and Citigroup have revealed plans to axe a total up to 52,000 people from their workforces.

Research published today by Post Office Financial Services says Britons are tightening their purse strings on everything from food to petrol.

On average, they are spending around £160 a month less, including around £50 less on food and almost £40 less on petrol.

The report, which interviewed nearly 2,000 people, found one in five is worried about job security. One in ten fears losing the family home.